- AI-driven scams on Huione processed $375.9M in crypto, with AI service vendor earnings surging by 1,900% between 2021-2024.
- Fraudsters exploit AI-generated synthetic identities to bypass security, fueling an increase in APP fraud and unauthorized transactions.
- Chainalysis tracked 2,345 scam-related transactions on Huione, with infrastructure and social media vendors recording the highest activity.
According to a recent Chainalysis analysis, scammers are increasingly employing artificial intelligence to commit bitcoin fraud. Financial scams are on the rise because AI tools allow fraudsters to alter transactions, pose as victims, and get beyond security barriers.
Crypto Scam Losses Exceeded $9.9 Billion in 2024
In 2024, on-chain data recorded at least $9.9 billion in cryptocurrency scams. Although scam revenue has declined, more fraudulent addresses are still being identified. Moreover, AI tools have enhanced scam techniques, making them harder to detect and prevent.
Besides AI advancements, Huione, a P2P marketplace linked to illicit services, processed over $375.9 million in cryptocurrency transactions in 2024. Between 2021 and 2024, Huione’s scam infrastructure providers saw significant revenue growth. Additionally, AI service vendors on the platform reported a staggering 1,900% earnings increase, reflecting AI’s expanding role in fraudulent schemes.
AI Technology Fuels Scam Growth
Generative AI enables innovation, but it also aids scammers in creating deceptive content. AI-powered fraud detection firm Alterya found that 85% of scams involve fully verified accounts that bypass standard identity checks. Consequently, fraudsters can exploit APP fraud by deceiving victims into approving unauthorized transactions.
Furthermore, according to Chainalysis, criminals can mimic actual users with the aid of artificial intelligence-generated synthetic identities. These methods increase the likelihood that fraudulent schemes will succeed by enabling scammers to get beyond security measures.
On-Chain Data Reveals Scam Interactions
Chainalysis identified 2,345 transactions in 2024 involving scams, infrastructure providers, AI vendors, and social media management services on Huione’s platform. Infrastructure providers and social media vendors recorded the highest transaction volume. Moreover, these vendors frequently transferred funds among themselves, reinforcing scam networks. Scam operators primarily paid for social media management services, while AI and data vendors had lower interaction volumes.
Importantly, according to Chainalysis, financial security is increasingly at risk from AI-driven schemes. The rise in fraud on Huione illustrates how AI is becoming more and more involved in financial crimes. To combat AI-powered financial deceit, authorities and security companies must strengthen fraud detection and enforcement strategies.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
